Daniel's Furniture Store buys a sofa at a wholesale price of $100.00. If the markup rate at Daniel's Furniture Store is 70%, what is the total markup for the sofa in dollars?
Answer: Remember that a markup rate is a percentage of the wholesale price that a store adds to get a selling or retail price. The amount of markup can be found with the following equation: markup rate $\times$ wholesale price $=$ amount of markup Since the markup rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $70\%$ is equivalent to $\frac{70}{100}$ which is also equal to $70 \div 100$ $70 \div 100 = 0.70$ Now you have all the information you need to use the formula above! $0.70$ $\times$ $$100.00$ $=$ $$70.00$ The amount of markup on the sofa is $$70.00$.